www.tEDmag.com May 17 • the ELEC TRICAL DIS TRIBUTOR 73our associates into account,” said Greg Lutchka, CFO. “I came here from healthcare, and when I talk to our new employees, I always point out that at former companies, we al- ways talked about [valuing employ- ees] but here, we really do it.” CEO Chris Scarbrough sees the ESOP structure as a key part of the company’s differentiation as a busi- ness. “It sets us apart from our im- mediate competitors and drives a lot of creative thinking and involvement in the success of the company from associates at all levels,” he said. “When they feel they are a bigger part of the company, it changes howthey do their jobs, how they look to service customers, how they give back to the community. When asso- ciates are part of the ownership, they share in the company’s success and the strategies to make it successful.”A Culture ThatIncludes Everyone The ESOP structure is just part of Springfield Electric’s culture; other key elements include investing in employees and being involved in the local communities it serves. Employees have many opportu- nities to get additional training to ensure they are equipped and willing to provide stellar service to cus- tomers. From the leadership to front- line employees, the company takes an active role in the community. “A lot of compa- nies say this, but our only long-term com- petitive asset is our associates,” said Mark Barthel, presi- dent. “We continue to invest in our associates with ongoing training and to help them invest in their careers. Additionally, our branch-centric business model affords us an oppor- tunity to be deeply ingrained in our local markets by supporting the com- munity and being deeply involved in our customers. “We share our success with our communities,” he added. “For exam- ple, our associates are very involved in the United Way and other organi- zations; we contribute financially and encourage our associates to donate their time as well by giving them time off to volunteer. The en- tire leadership team participates as well to show our commitment.” Barthel noted that this kind ofinvolvement has multiple benefits for individuals and the company: “It builds morale, advocates for the in- dustry, and helps build the commu- nity. And it’s just a good feeling for us as individuals to know that we are doing something to help.” That philosophy is not something Springfield Electric’s leadership culled from a book on management; it’s built into the DNA of the com- pany. “It’s a cliché, but in this case, it’s true: Our people and culture are our best assets,” said Lutchka. “Our people will really do what they think is best. Bill Schnirring, our former president and CEO, built this cul- ture. He’s all about doing the right thing. It’s simple stuff, but it’s hard to do when we run into chal- lenges, and that’s something he built into this culture. “It may cost more up front and be harder to do, but we look long term,” Lutchka continued. “We don’t have to worry about a short-term earnings report or share- holder call. We have the freedom to do what we think is right.” Executive Chairman Dan Dungan sees benefits—both tangible and intangible—resulting from the com- pany’s culture. “Our motto is that no one accomplishes anything signifi- cant without his or her team. Our employees have a level of profession- alism that runs deep in our ranks. No one here is denied an educational opportunity, and they all have a win- ning attitude,” said Dungan. “It’s hard to measure some intangible qualities, but metrics can be ob- tained in other ways. On customer surveys we get great marks on ser- vice, integrity, honesty, and sales “We don’t have to worry about a short-term earnings report or shareholder call. We have the freedom to do what we think is right.” —Greg Lutchka, CFO, Springfield Electric Supply